Approved Resolutions | Regular Meeting of the ICANN Board | 5 May 2024

Rationale for Resolutions 2024.05.05.01 – 2024.05.05.02

In November 2014, following ICANN Board approval, ICANN organization (org) engaged an expert third party outsourcing firm to augment ICANN's IT capacity. The preferred and current IT outsourcing firm was selected following the RFP process in 2014 and again in 2017. This led to multiple consecutive contract renewals, with the current contract extended through April 2024.

The current IT outsourcing firm has continuously delivered such benefits as team flexibility, ability to ramp up/down or change skill sets quickly, a talent pool otherwise difficult to hire locally [Redacted – Confidential Negotiation Information]. In addition, the relationship with the current IT outsourcing firm has been beneficial to ICANN org and overall has been a success in augmenting ICANN's IT capacity in areas of software engineering, service maintenance, quality assurance and content management. These services are part of ICANN's IT ongoing operations and the need to augment the ICANN's IT capacity for these services continues.

As explained above, there is a natural continuation of previous work carried out by the IT outsourcing service provider. The current IT outsourcing firm has maintained good service and competitive rates through every past renewal with limited rate increases withstanding global inflation.

[Redacted – Confidential Negotiation Information]

Accordingly, both ICANN organization and the BFC recommended that the Board authorize the organization to enter into, and make disbursement in furtherance of, an extended contract with the current IT outsourcing firm, covering the period of [Redacted – Confidential Negotiation Information], with a total cost not to exceed [Redacted – Confidential Negotiation Information].

This decision is in the furtherance of ICANN's mission and the support of public interest to support the security, stability and resiliency of the domain name system by ensuring that there is a fully resourced engineering and IT team able to support the organization in a fiscally responsible and accountable manner.

This decision will have a fiscal impact, but the impact has already been accounted for in the FY25 budget and will be for future budgets as well.

As noted above, this action is intended to have a positive impact on the security, stability and resiliency of the domain name system.

This is an Organizational Administrative Function that does not require public comment.

Rationale for Resolution 2024.05.05.03 – 2024.05.05.07

The Board approved the ICANN FY24-28 Operating and Financial Plan on 30 April 2023 which included an FY24 Budget with balanced funding and expenses. Due to several economic factors and one-time costs, the expenses for the work included in FY24 is now projected to be higher than the projected funding. ICANN is seeking approval to end FY24 with an operational deficit in ICANN Operations not to exceed US$8 million, funded by existing cash in the Operating Fund from previous fiscal years' excess (i.e., higher funding than expenses).

On 12 December 2023, the Draft ICANN FY25-29 Operating and Financial Plan, Draft ICANN FY25 Operating Plan and Budget, and Draft IANA FY25 Operating Plan and Budget were posted for public comment. The published Draft ICANN FY25-29 Operating and Financial Plan, Draft ICANN FY25 Operating Plan and Budget, and Draft IANA FY25 Operating Plan and Budget were based on numerous discussions with members of ICANN organization and the ICANN community, including extensive consultations with ICANN Supporting Organizations, Advisory Committees, and other stakeholder groups throughout the prior several months.

Public comments to the Draft ICANN FY25-29 Operating and Financial Plan, Draft ICANN FY25 Operating Plan and Budget, and the Draft IANA FY25 Operating Plan and Budget were considered and responses were summarized in a summary report on public comments published on 2 April 2024. Recent decisions by the ICANN Board that were taken after the public comment proceeding closed were also considered and revisions are reflected, as appropriate and feasible, in the proposed-for-adoption ICANN FY25-29 Operating and Financial Plan, ICANN FY25 Operating Plan and Budget and IANA FY25 Operating Plan and Budget.

In addition, the following consultation activities were carried out:

• 10 October 2023 – Community webinar held during ICANN78 Prep Week on the Planning and Finance Update

• 13 December 2023 – Community webinars were held to review the Draft ICANN FY25-29 Operating and Financial Plan, Draft ICANN FY25 Operating Plan and Budget, and Draft IANA FY25 Operating Plan and Budget published for public comment

• 20 February 2023 – the summary of comments received through the public comment process were shared in a public session during the ICANN79 Prep week, including with representatives of the ICANN bodies that submitted the public comments, to help ensure the comments were adequately understood and appropriate consideration was given to them.

• In addition to the public comment process, ICANN actively solicited community feedback and consulted with the ICANN community by other means, including attendance and presentations for the At-Large Operations, Finance, and Budget Working Group (OFBWG), Generic Names Supporting Organization Standing Committee on ICANN Budget and Operations Plan, and Country Code Names Supporting Organization Strategic and Operational Planning Standing Committee from December 2023– February 2024.

All comments received were considered, and where feasible and appropriate, revisions have been incorporated into the proposed-for-adoption ICANN FY25-29 Operating and Financial Plan, the proposed-for-adoption ICANN FY25 Operating Plan and Budget, and the proposed-for-adoption IANA FY25 Operating Plan and Budget.

There were no material changes made to the plans as a result of public comment. The changes made resulting from public comments submitted were in the narrative and presentation aspects of the plan documents only.

However, following the publication of the FY25 draft plans for public comment, ICANN reviewed the latest planning and financial assumptions, which is a key step in the process. Based on the latest projections, the funding for FY25 is projected to be lower than originally estimated. For FY25, the "base" case scenario for funding is now projected at $145M versus the previous estimate of $148M. The latest funding projections incorporate changes due to a softening in domain name marketplace registrations. As the changes reflected in the new plans were defined after the public comment process was concluded, ICANN held two webinars on 25 April 2024, to publicly highlight the changes that have been made to the draft documents since they were published in December 2023. The topics addressed, questions asked and answered, and the input received during the two webinars did not lead to identifying any additional changes to the revised plans.

As a part of its ongoing processes, ICANN will continue attempting to identify new efficiencies and process improvements to maintain support and services, while minimizing costs. As a result of lower funding projections, ICANN revised the FY25 Operating Plan and Budget, and is also projecting lower expenses in FY25. The Board directed, and ICANN is committed to develop an approach by the end of FY25 that will achieve a sustainable rate of expenses for its level of funding.

The ICANN FY25 Operating Plan and Budget also discloses financial information on the New gTLD Program: Next Round and the ICANN Grant Program. Furthermore, because the Registrar Fees are key to the development of the Budget, the ICANN FY25 Operating Plan and Budget sets out and establishes those fees, which are consistent with recent years, and will be reviewed for approval by the Registrars.

The ICANN FY25-29 Operating and Financial Plan, the ICANN FY25 Operating Plan and Budget and IANA FY25 Operating Plan and Budget will have a positive impact on ICANN in that together they provide a proper framework by which ICANN will be managed and operated, which also provides the basis for ICANN to be held accountable in a transparent manner.

This decision is in the public interest and within ICANN's mission, as it is fully consistent with ICANN's strategic and operational plans, and the results of which allow ICANN to satisfy its mission.

This decision will have a fiscal impact on ICANN org and the Community as is intended. This should have a positive impact on the security, stability and resiliency of the domain name system (DNS) with respect to any funding that is dedicated to those aspects of the DNS.

This is an Organizational Administrative Function that has already been subject to public comment as noted above.

Rationale for Resolution 2024.05.05.08

Why is the Board addressing the issue?

The appropriate nature and scope of policy protections for the names and acronyms associated with IGOs in the domain name system has been a longstanding issue in the community. In April 2014, the Board voted to adopt several GNSO policy recommendations concerning top and second level protections for the full names of IGOs on a list prepared by the GAC in March 2013. These recommendations are now the subject of an ICANN Consensus Policy (effective 1 August 2018). In April 2023, the Board voted to adopt additional GNSO policy recommendations concerning second level curative rights protection for these IGOs. These recommendations will now be implemented by the ICANN organization in consultation with the community.

Article 12, Section 12.2(a)(ix) of the ICANN Bylaws permits the GAC to "put issues to the Board directly, either by way of comment or prior advice, or by way of specifically recommending action or new policy development or revision to existing policies". Throughout the various GNSO policy processes, the GAC had provided Consensus Advice to the Board on the topic of IGO protections, including on the specific need to protect IGO acronyms at the second level. Most recently, the GAC's Cancun Communique issued in March 2023 included GAC Consensus Advice for the Board to: (i) adopt the outcomes of the GNSO's EPDP on Specific Curative Rights Protections for IGOs; and (ii) maintain the current moratorium on the registration of domain names matching the acronyms of those IGOs on the GAC's list until implementation of the EPDP recommendations is fully complete. The Board accepted the first part of the GAC advice in May 2023.

What is the proposal being considered?

The Board is taking action today on the second, and final, part of the GAC advice on second level IGO protections from the GAC's Cancún Communiqué. Specifically, the Board is voting to accept the GAC's advice to maintain the current moratorium on the registration of domain names matching the acronyms of those IGOs on the GAC's list until implementation of the EPDP recommendations is fully complete.

Which stakeholders or others were consulted?

The Board has engaged with the GAC and the GNSO on numerous occasions, to seek to understand the GAC's advice and its rationale as well as to understand any concerns from the community regarding the scope and timing of the proposed permanent notification system for IGOs and the ICANN organization's planned implementation of the recommendations from the EPDP on Specific Curative Rights Protections for IGOs. These engagements include, but are not limited to, discussions that were part of the Board-GAC consultation process initiated by the Board in October 2020 and discussions with the GNSO Council on the implications of the GNSO's EPDP policy recommendations.

What concerns or issues were raised by the community?

The GAC had noted that lifting the current moratorium on registration of domain names matching an IGO's acronym could cause irreparable harm to an IGO if the IGO cannot use ICANN's existing dispute resolution procedures. The GNSO's policy recommendations on curative rights protections for IGOs are intended to facilitate the use of these procedures by eligible IGOs. The GAC had thus advised the Board to maintain the current moratorium until implementation of these policy recommendations is complete.

The GNSO Council had identified the completion of work on second level protections for IGO acronyms as a strategic priority in December 2022. It has also engaged the Board and the ICANN organization in discussions about the timing and timeline for implementation of the Board-adopted policy recommendations concerning IGO protections.

What significant materials did the Board review?

The Board reviewed the following materials:

• ICANN76 Cancún Communiqué: https://gac.icann.org/contentMigrated/icann76-cancun-communique

• GNSO Council Review of ICANN76 Cancún Communiqué: https://www.icann.org/en/system/files/correspondence/ducos-to-sinha-20apr23-en.pdf

• Board Scorecard on ICANN76 Cancún Communiqué: https://www.icann.org/en/system/files/files/scorecard-icann76-communique-board-action-15may23-en.pdf

• Board-GAC correspondence clarifying relevant GAC advice: https://www.icann.org/en/system/files/correspondence/ismail-to-botterman-07oct21-en.pdf

What factors did the Board find to be significant?

The Board appreciates the collaborative dialogues with the GAC and the GNSO Council that has contributed to the Board's understanding of the GAC's advice and the GNSO's recommendations on second level IGO acronym protections. The Board also appreciates the extensive community work on multiple aspects of the topic of second level protections for IGO acronyms that has spanned over ten (10) years. The Board believes that its action today will be another step forward in resolving all other remaining issues relating to IGO acronyms protections. 

Are there positive or negative community impacts?

Accepting the GAC advice will have a positive impact in that it will demonstrate that ICANN continues to address complex issues and public policy concerns that have been the subject of longstanding and extensive community work. Taking this action now will also highlight the Board's commitment to work with the community to reach final resolution on all pending issues relating to second level protections for IGO acronyms.

Are there fiscal impacts or ramifications on ICANN (strategic plan, operating plan, budget); the community; and/or the public?

Implementing the various sets of policy recommendations, completing the planned permanent IGO notification system, and preparing to remove the moratorium on registration of domain names matching the relevant IGO acronyms will have financial and resourcing impacts on ICANN org. Prioritizing this work may result in delay relating to other work involving the same personnel and resources.

Are there any security, stability or resiliency issues relating to the DNS?

None.

Is this decision in the public interest and within ICANN's mission?

This action is within ICANN's Mission and mandate and in the public interest as set forth in the ICANN Bylaws.

Is this either a defined policy process within ICANN's Supporting Organizations or ICANN's Organizational Administrative Function decision requiring public comment or not requiring public comment?

This is an Organizational Administrative function that does not require public comment.

Rationale for Resolutions 2024.05.05.09 - 2024.05.05.10

Article 12, Section 12.2(a)(ix) of the ICANN Bylaws permits the GAC to "put issues to the Board directly, either by way of comment or prior advice, or by way of specifically recommending action or new policy development or revision to existing policies." In its ICANN79 San Juan Communiqué (11 March 2024), the GAC issued advice to the Board regarding the Applicant Support Program and Urgent Requests for Disclosure of Registration Data. Article 12, Section 12.2(a)(x) of the ICANN Bylaws states that the "advice of the Governmental Advisory Committee on public policy matters shall be duly taken into account, both in the formulation and adoption of policies. In the event that the Board determines to take an action that is not consistent with Governmental Advisory Committee advice, it shall so inform the Governmental Advisory Committee and state the reasons why it decided not to follow that advice. Any Governmental Advisory Committee advice approved by a full Governmental Advisory Committee consensus, understood to mean the practice of adopting decisions by general agreement in the absence of any formal objection ("GAC Consensus Advice"), may only be rejected by a vote of no less than 60% of the Board, and the Governmental Advisory Committee and the Board will then try, in good faith and in a timely and efficient manner, to find a mutually acceptable solution. The Governmental Advisory Committee will state whether any advice it gives to the Board is GAC Consensus Advice."

The Board is taking action today on the GAC Consensus Advice to the ICANN Board in the ICANN79 San Juan Communiqué, including the items related to Applicant Support Program and Urgent Requests for Disclosure of Registration Data. This decision is in the public interest and within ICANN's mission, as it is fully consistent with ICANN's bylaws for considering and acting on advice issued by the GAC.

The Board's actions are described in the scorecard dated 05 May 2024.

In adopting its response to the GAC advice in the ICANN79 San Juan Communiqué, the Board reviewed various materials, including, but not limited to, the following materials and documents:

• ICANN79 San Juan Communiqué (11 March 2024): https://gac.icann.org/contentMigrated/icann79-san-juan-communique.

• The GNSO Council's review of the advice in the ICANN79 San Juan Communiqué as presented in the 04 April 2024 letter to the Board: https://gnso.icann.org/sites/default/files/policy/2024/correspondence/dibiase-to-sinha-04apr24-en.pdf.

The adoption of the GAC scorecard will have a positive impact on the community because it will assist with resolving the advice from the GAC concerning gTLDs and other matters. There are no foreseen fiscal impacts associated with the adoption of this resolution. Approval of the resolution will not impact security, stability or resiliency issues relating to the DNS. This is an Organizational Administrative function that does not require public comment.